Landfill Methane Outreach Program Overview

							Landfill Gas Energy – Good for the Community

U.S. Environmental Protection Agency Landfill Methane Outreach Program (LMOP)
File Last Updated: June 2008

Landfill Gas 101
• Landfill gas (LFG) is a by-product of the decomposition of municipal solid waste (MSW):
• ~50% methane (CH4) • ~50% carbon dioxide (CO2) • <1% non-methane organic compounds (NMOCs)

• For every 1 million tons of MSW:
• ~0.8 megawatts (MW) of electricity • ~432,000 cubic feet per day of LFG

• If uncontrolled, LFG contributes to smog and global warming, and may cause health and safety concerns

Why Landfill Gas is a Concern
• Methane is a greenhouse gas
• Methane absorbs terrestrial infrared radiation (heat) that would otherwise escape to space (GHG characteristic)

• Methane as GHG is over 20x more potent by weight than CO2 • Methane is more abundant in the atmosphere now than anytime in the past 400,000 years and 150% higher than in the year 1750 • Landfills were the second largest human-made source of methane in the United States in 2006, accounting for 22.6% generated

Modern Sanitary Landfill
Gas Header Pipe Intermediate/ Final Cover Flare/ LFGTE Plant Leachate Plant

Liner System Gas Extraction Wells

Waste Cells

Monitoring Probes

Benefits of Landfill Gas Energy Projects
• Demonstrate environmental leadership • Generate additional revenue • Reduce emissions of GHGs • Improve air quality • Reduce environmental compliance costs • Add economic value – create jobs • Conserve land

Diversity of Project Types
Electricity Generation

Reciprocating Internal Combustion Engine

Gas Turbine

Microturbine

Diversity of Project Types
Direct Use of LFG
• Direct-use projects are growing!
• Boiler applications – replace natural gas, coal, fuel oil • Combined heat & power (CHP) • Direct thermal (dryers, kilns) • Natural gas pipeline injection • Medium & high Btu • Greenhouse • Leachate evaporation • Vehicle fuel (LNG, CNG) • Artist studio • Hydroponics • Aquaculture (fish farming)
LFG-fired Boiler Ft. Wayne, IN Pottery Studio Sugar Grove, NC Greenhouse Burlington, NJ

File Last Updated: June 2008

State of the National LFG Industry (April 2008)
• At least 450 operational projects in 43 states supplying:
• 11 billion kilowatt hours of electricity and 77 billion cubic feet of LFG to direct-use applications annually

• Estimated Annual Environmental Benefits
• Carbon sequestered annually by ~17,800,000 acres of pine or fir forests, or • CO2 emissions from ~182,000,000 barrels of oil consumed, or • Annual greenhouse gas emissions from ~14,300,000 passenger vehicles

• Estimated Annual Energy Benefit
• Powering more than 870,000 homes and heating nearly 534,000 homes

LFG Energy Projects and Candidate Landfills

*

Project Structures
• Your landfill gas is an asset • Options include:
• Develop the project internally • Team with a project developer – sell the gas rights • Team with a project developer – share the risk

Typical Electric Project Components & Costs
3 MW, engine, 15-yr project:
• Total capital cost = ~$3.76 million
• Gas compression & treatment, engine, & generator = ~$3.5 million • Interconnect equipment = ~$260,000*

• Annual operation & maintenance cost = ~$570,000/year
*interconnect costs can vary widely

Typical Direct-Use Project Components & Costs
800 scfm, 5-mi pipeline, 15-yr project:
• Total capital cost = ~$1.63 million
• Gas compression & treatment = ~$230,000 • Pipeline = ~$280,000/mile • (Plus end-of-pipe combustion equipment retrofits, if needed)

• Annual operation & maintenance cost = ~$140,000/year

Potential LFG Revenue
• Electric projects
• Sale of electricity (4 - 6 cents/kWh) • Sale of Renewable Energy Credits (RECs) • Premium pricing for renewables through RPS/RPG or voluntary green power markets • Tax credits & incentives • Clean Renewable Energy Bonds (CREBs)

• Direct-use projects
• Sale of LFG (~$4.50 per MMBtu)

• Both
• Greenhouse gas emissions trading • Energy cost savings

Jobs and Revenue Creation
• A typical 3 MW LFG electricity project is estimated to have the following benefits (direct, indirect, and induced) during the construction year:
• Increase the output of the national economy by ~$14 million ($3 million of which is a local benefit and mostly employee earnings) • Employ nearly 70 people nationally (expressed in full-time equivalents [FTE] per year)

Jobs and Revenue Creation (cont.)
• A typical 1,040 scfm LFG direct-use project is estimated to have the following benefits (direct, indirect, and induced) during the construction year:
5-mile pipeline Increase output of national economy Portion of national benefit at local level People employed nationally (FTE) $6 million 10-mile pipeline $12 million

$2 million

$4 million

43

80

LFG and State Renewable Portfolio Standards
• Renewable Portfolio Standard (RPS) –
requires utilities to supply a percentage of power from renewable sources • 26 states plus District of Columbia have an RPS

• Renewable Portfolio Goal (RPG) – same
as RPS except an objective not a requirement
• 5 states have an RPG (LFG eligibility not certain for 1)

• LFG is eligible as a renewable source for 30 states and District of Columbia

Public and Private Entities Moving to Reduce GHG Emissions
• Voluntary Markets
• Currently where most GHG activity occurs • Examples - Chicago Climate Exchange, Blue Source

• Compliance Markets
• Rapidly evolving, will become the dominant market • Led by Massachusetts and California and regional efforts

Emissions Trading of LFG
• Chicago Climate Exchange (CCX) is an example of a voluntary GHG reduction and trading program
• Offers a credit of 18.25 metric tons CO2 per metric ton of methane combusted • Applicable for LFG collection and combustion systems placed into service after 12/31/98 • Prices range from $1 to $6.50 per metric ton (market factors affect pricing) • Only landfills not required by federal law (e.g., NSPS) to combust LFG are eligible • Landfill methane emission offsets brochure at www.chicagoclimateexchange.com

Federal Financial Incentives
• Clean Renewable Energy Bonds (CREBs)
• National allocation of $1.2 billion • Current issuance period of 1/1/07 to 12/31/08 • In 2006, IRS granted issuance of 36 bonds for LFGE projects

• Renewable Energy Production Incentive (REPI)
• Local/state government or non-profit electric coop facilities • Online by 10/1/16 • Payment for first 10 years of operation

EPA’s Landfill Methane Outreach Program
• Established in 1994 • Voluntary program that creates alliances among states, energy users/providers, the landfill gas industry, and communities

Mission: To reduce methane emissions by lowering barriers and promoting the development of cost-effective and environmentally beneficial landfill gas energy (LFGE) projects.

LMOP Tools and Services
• Network of 700+ Partners (and growing) • Newsletter and listserv • Direct project assistance • Technical and outreach publications • Project and candidate landfill database • Web site (epa.gov/lmop) • Support for ribbon cuttings/ other PR • Presentations at conferences • State training workshops • LMOP Annual Conference, January 2010

EPA Administrator Stephen L. Johnson Keynote Speaker 11 Annual LMOP Conference Washington, DC
th

January 9, 2008

How Can We Work Together? Direct Project Assistance
• Analyze landfill resource – gas modeling • Identify potential matches – LMOP Locator • Assess landfill and end user facilities • Look at project possibilities
• Direct-use (boiler, heating, cooling, direct thermal) • Combined Heat & Power (engine, turbine, microturbine) • Electric (engine, turbine, microturbine) • Alternative Fuels (medium or high Btu, LNG, CNG)

• Initial feasibility analyses – LFGcost

For More Information
www.epa.gov/lmop
T4: Swarupa
WA MT ND MN NH OR SD ID WY NE NV IA PA IL UT CO KS MO KY OK AZ NM TN SC MS AK TX LA AL GA OH IN WV VA NC NJ DE MD RI CT WI MI NY VT MA ME

T3: Tom

T1: Rachel

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T2: Victoria

Rachel Goldstein goldstein.rachel@epa.gov, (202) 343-9391 Victoria Ludwig ludwig.victoria@epa.gov, (202) 343-9291

Swarupa Ganguli ganguli.swarupa@epa.gov, (202) 343-9732 Tom Frankiewicz frankiewicz.thomas@epa.gov, (202) 343-9232